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Optimization and strategic behavior in a passenger–taxi service system

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  • Shi, Ying
  • Lian, Zhaotong

Abstract

We study a passenger–taxi problem in this paper. The objective to maximize the social welfare and optimize the allocation of taxi market resources. We analyze the strategic behavior of passengers who decide whether to join the system or balk in both observable and unobservable cases. In observable case, we obtain the optimal selfish threshold that maximizes their individual revenues and give the conditions of the existence of the optimal selfless threshold that maximize the social welfare. In unobservable case, we discuss the equilibrium strategies for the selfish passengers and derive the optimal arrival rate for the socially concerned passengers. Further, we analyze how the government controls the number of taxis by subsidizing taxis or levying a tax on taxis.

Suggested Citation

  • Shi, Ying & Lian, Zhaotong, 2016. "Optimization and strategic behavior in a passenger–taxi service system," European Journal of Operational Research, Elsevier, vol. 249(3), pages 1024-1032.
    • Handle: RePEc:eee:ejores:v:249:y:2016:i:3:p:1024-1032
    DOI: 10.1016/j.ejor.2015.07.031
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    Cited by:

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    5. S. M. Qasim & Jamal A. Farooquie, 2024. "Economics of secondary queue of Indian railways passenger reservation system: a queueing science approach," OPSEARCH, Springer;Operational Research Society of India, vol. 61(4), pages 1795-1824, December.
    6. Legros, Benjamin & Fransoo, Jan & Jouini, Oualid, 2024. "How to optimize container withholding decisions for reuse in the hinterland?," Other publications TiSEM 8c64b894-e9ee-415a-b396-1, Tilburg University, School of Economics and Management.
    7. Yang, Qiaoli & Qiao, Zheng & Yang, Bo & Shi, Zhongke, 2021. "Modeling and uncovering the passenger–taxi dynamic queues at taxi station with multiple boarding points using a Markovian environment," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 572(C).
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    14. Hung Q. Nguyen & Tuan Phung-Duc, 2022. "Strategic customer behavior and optimal policies in a passenger–taxi double-ended queueing system with multiple access points and nonzero matching times," Queueing Systems: Theory and Applications, Springer, vol. 102(3), pages 481-508, December.
    15. Legros, Benjamin & Fransoo, Jan & Jouini, Oualid, 2024. "How to optimize container withholding decisions for reuse in the hinterland?," European Journal of Operational Research, Elsevier, vol. 316(3), pages 930-941.
    16. Yang, Qiaoli & Yang, Bo & Qiao, Zheng & Tang, Min-an & Gao, Fengyang, 2021. "Impact of possible random factors on queue behaviors of passengers and taxis at taxi stand of transport hubs," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 580(C).

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